<PAGE>

                               UNITED STATES
                      SECURITIES AND EXCHANGE COMMISSION
                          Washington, D.C. 20549

                                 FORM 10-Q



(Mark One)

[XX]  QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES 
      EXCHANGE ACT OF 1934

For the quarterly period ended      March 31, 1997
                               -----------------------------------------------

                                      OR

[  ]  TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES 
      EXCHANGE ACT OF 1934

For the transition period from _____________________ to _____________________

                               _____________________

For Quarter Ended March 31, 1997                  Commission File No. 0-21396


                            AFG Investment Trust A
------------------------------------------------------------------------------
            (Exact name of registrant as specified in its charter)

         Delaware                                              04-3145953
-------------------------------------                     --------------------
   (State or other jurisdiction of                            (IRS Employer
    incorporation or organization)                         Identification No.)

98 North Washington Street, Boston, MA                             02114
---------------------------------------                    -------------------
(Address of principal executive offices)                         (Zip Code)

Registrant's telephone number, including area code     (617) 854-5800
                                                    --------------------------


------------------------------------------------------------------------------
               (Former name, former address and former fiscal year,
                         if changed since last report.)

  Indicate by check mark whether the registrant (1) has filed all reports 
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 
1934 during the preceding 12 months (or for such shorter period that the 
registrant was required to file such reports), and (2) has been subject to 
such filing requirements for the past 90 days.   Yes   _X_    No  ___

                APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY
                   PROCEEDINGS DURING THE PRECEDING FIVE YEARS

  Indicate by check mark whether the registrant has filed all documents and 
reports required to be filed by Sections 12, 13, or 15(d) of the Securities 
Exchange Act of 1934 subsequent to the distribution of securities under a 
plan confirmed by a court during the preceding 12 months (or for such shorter 
period that the registrant was required to file such reports), and (2) has 
been subject to such filing requirements for the past 90 days. Yes ___  No ___

<PAGE>

                              AFG Investment Trust A

                                     FORM 10-Q

                                       INDEX

                                                                         Page

PART I.  FINANCIAL INFORMATION:

  Item 1.  Financial Statements

    Statement of Financial Position
      at March 31, 1997 and December 31, 1996                               3

    Statement of Operations
      for the three months ended March 31, 1997 and 1996                    4

    Statement of Cash Flows
      for the three months ended March 31, 1997 and 1996                    5

    Notes to the Financial Statements                                    6-10


  Item 2.  Management's Discussion and Analysis of Financial
      Condition and Results of Operations                               11-14


PART II.  OTHER INFORMATION:

  Items 1 - 6                                                              15



                                      2

<PAGE>

                            AFG Investment Trust A

                        STATEMENT OF FINANCIAL POSITION
                     March 31, 1997 and December 31, 1996

                                 (Unaudited)

<TABLE>
<CAPTION>
                                                            March 31,   December 31,
                                                               1997        1996
                                                           -----------  ------------
<S>                                                        <C>          <C>
ASSETS

Cash and cash equivalents                                  $ 2,123,059  $ 1,832,248

Rents receivable                                               588,445      623,237

Accounts receivable - affiliate                                 48,939       55,849

Equipment at cost, net of accumulated depreciation
  of $11,699,306 and $11,280,817 at March 31, 1997
  and December 31, 1996, respectively                       10,721,050   11,663,702

Organization costs, net of accumulated amortization
  of $4,917 and $4,667 at March 31, 1997
  and December 31, 1996, respectively                               83          333
                                                           -----------  ------------

    Total assets                                           $13,481,576  $14,175,369
                                                           -----------  ------------
                                                           -----------  ------------

LIABILITIES AND PARTICIPANTS' CAPITAL

Notes payable                                              $ 3,655,800  $ 4,249,311
Accrued interest                                                48,990       62,360
Accrued liabilities                                             18,750       23,250
Accrued liabilities - affiliate                                 41,381       38,293
Deferred rental income                                          32,608       18,721
Cash distributions payable to participants                     165,220      165,220
                                                           -----------  ------------

    Total liabilities                                        3,962,749    4,557,155
                                                           -----------  ------------

Participants' capital (deficit):
  Managing Trustee                                             (28,142)     (27,148)
  Special Beneficiary                                         (239,424)    (231,225)
  Beneficiary Interests
  (549,218 Interests; initial purchase price of $25 each)    9,786,393    9,876,587
                                                           -----------  ------------

    Total participants' capital                              9,518,827    9,618,214
                                                           -----------  ------------

    Total liabilities and participants' capital            $13,481,576  $14,175,369
                                                           -----------  ------------
                                                           -----------  ------------
</TABLE>

                   The accompanying notes are an integral part
                         of these financial statements.

                                       3

<PAGE>

                            AFG Investment Trust A

                            STATEMENT OF OPERATIONS
               for the three months ended March 31, 1997 and 1996

                                 (Unaudited)



                                                1997                   1996
                                             ----------              ----------
Income:

  Lease revenue                              $1,179,837              $1,254,648

  Interest income                                25,800                   6,336

  Gain (loss) on sale of equipment                2,095                (148,067)
                                             ----------              ----------

    Total income                              1,207,732               1,112,917
                                             ----------              ----------

Expenses:

  Depreciation and amortization                 932,497                 952,119

  Interest expense                               43,358                 104,957

  Equipment management fees - affiliate          44,578                  48,461

  Operating expenses - affiliate                 38,857                  16,976
                                             ----------              ----------

    Total expenses                            1,059,290               1,122,513
                                             ----------              ----------

Net income (loss)                            $  148,442              $   (9,596)
                                             ----------              ----------
                                             ----------              ----------

Net income (loss)
  per Beneficiary Interest                   $     0.25              $    (0.02)
                                             ----------              ----------
                                             ----------              ----------

Cash distributions declared
  per Beneficiary Interest                   $     0.41              $     0.32
                                             ----------              ----------
                                             ----------              ----------

                   The accompanying notes are an integral part
                         of these financial statements.

                                       4

<PAGE>

                            AFG Investment Trust A

                            STATEMENT OF CASH FLOWS
               for the three months ended March 31, 1997 and 1996

                                 (Unaudited)

                                                        1997          1996
                                                     ----------    -----------
Cash flows from (used in) operating activities:
Net income (loss)                                    $  148,442    $    (9,596)

Adjustments to reconcile net income (loss) to
  net cash from operating activities:
    Depreciation and amortization                       932,497        952,119
    (Gain) loss on sale of equipment                     (2,095)       148,067

Changes in assets and liabilities
  Decrease (increase) in:
    rents receivable                                     34,792       (121,469)
    accounts receivable - affiliate                       6,910        (29,159)
  Increase (decrease) in:
    accrued interest                                    (13,370)        23,122
    accrued liabilities                                  (4,500)        (2,185)
    accrued liabilities - affiliate                       3,088         53,049
    deferred rental income                               13,887         (9,805)
                                                     ----------    -----------

      Net cash from operating activities              1,119,651      1,004,143
                                                     ----------    -----------

Cash flows from (used in) investing activities:
  Purchase of equipment                                      --     (1,441,796)
  Proceeds from equipment sales                          12,500      1,407,550
                                                     ----------    -----------

      Net cash from (used in) investing activities       12,500        (34,246)
                                                     ----------    -----------

Cash flows from (used in) financing activities:
  Proceeds from notes payable                                --        997,888
  Principal payments - notes payable                   (593,511)      (710,033)
  Distributions paid                                   (247,829)      (190,638)
                                                     ----------    -----------

      Net cash from (used in) financing activities     (841,340)        97,217
                                                     ----------    -----------

Net increase in cash and cash equivalents               290,811      1,067,114

Cash and cash equivalents at beginning of period      1,832,248        455,262
                                                     ----------    -----------

Cash and cash equivalents at end of period           $2,123,059    $1,522,376
                                                     ----------    -----------
                                                     ----------    -----------

Supplemental disclosure of cash flow information:
  Cash paid during the period for interest           $   56,728    $    81,835
                                                     ----------    -----------
                                                     ----------    -----------

                   The accompanying notes are an integral part
                         of these financial statements.

                                       5

<PAGE>

                            AFG Investment Trust A

                      Notes to the Financial Statements
                               March 31, 1997

                                 (Unaudited)

NOTE 1 - BASIS OF PRESENTATION

  The financial statements presented herein are prepared in conformity with 
generally accepted accounting principles and the instructions for preparing 
Form 10-Q under Rule 10-01 of Regulation S-X of the Securities and Exchange 
Commission and are unaudited.  As such, these financial statements do not 
include all information and footnote disclosures required under generally 
accepted accounting principles for complete financial statements and, 
accordingly, the accompanying financial statements should be read in 
conjunction with the footnotes presented in the 1996 Annual Report.  Except 
as disclosed herein, there has been no material change to the information 
presented in the footnotes to the 1996 Annual Report.

  In the opinion of management, all adjustments (consisting of normal and 
recurring adjustments) considered necessary to present fairly the financial 
position at March 31, 1997 and December 31, 1996 and results of operations 
for the three month periods ended March 31, 1997 and 1996 have been made and 
are reflected.

NOTE 2 - CASH

  At March 31, 1997, the Trust had $1,930,000 invested in reverse repurchase 
agreements secured by U.S. Treasury Bills or interests in U.S. Government 
securities.

NOTE 3 - REVENUE RECOGNITION

  Rents are payable to the Trust monthly, quarterly or semi-annually and no 
significant amounts are calculated on factors other than the passage of time. 
Rents from Reno Air, Inc. ("Reno Air"), as provided for in the lease 
agreement, are adjusted monthly for changes in the London Inter-Bank Offered 
Rate ("LIBOR").  Future rents from Reno Air, included below, reflect the most 
recent LIBOR effected rental payment.  The leases are accounted for as 
operating leases and are noncancellable. Rents received prior to their due 
dates are deferred.  Future minimum rents of $5,348,865 are due as follows:

  For the year ending March 31, 1998    $ 3,524,872
                                1999      1,057,754
                                2000        242,318
                                2001        208,771
                                2002        179,149
                          Thereafter        136,001
                                        -----------
                                Total   $ 5,348,865
                                        -----------
                                        -----------

                                      6

<PAGE>

                            AFG Investment Trust A

                      Notes to the Financial Statements

                                 (Continued)

NOTE 4 - EQUIPMENT

  The following is a summary of equipment owned by the Trust at March 31, 
1997.  In the opinion of Equis Financial Group ("EFG"), (formerly American 
Finance Group), the acquisition cost of the equipment did not exceed its fair 
market value.

                                      Remaining
                                     Lease Term         Equipment  
        Equipment Type                (Months)           at Cost
--------------------------            --------        ------------
Aircraft                                 9-71         $  6,814,662
Materials handling                       1-43            3,687,803
Retail store fixtures                    1-24            2,992,236
Vessels                                    11            2,399,580
Construction and mining                  1-70            1,945,484
Communications                             21            1,802,423
Computers and peripherals                1-18            1,738,961
Research and test                           6              459,282
Manufacturing                              15              442,590
Energy systems                              9              108,975
Photocopying                              1-7               28,360
                                                     -------------
                         Total equipment cost           22,420,356

                     Accumulated depreciation          (11,699,306)
                                                     -------------

   Equipment, net of accumulated depreciation         $ 10,721,050
                                                     -------------
                                                     -------------

  At March 31, 1997, the Trust's equipment portfolio included equipment 
having a proportionate original cost of $8,721,813, representing 
approximately 39% of total equipment cost.

  At March 31, 1997, the cost and net book value of equipment held for sale 
or re-lease was approximately $133,800 and $35,900, respectively.  The 
Managing Trustee is actively seeking the sale or re-lease of all equipment 
not on lease.  See also Note 9 - Subsequent Event.

NOTE 5 - RELATED PARTY TRANSACTIONS

  All operating expenses incurred by the Trust are paid by EFG on behalf of 
the Trust and EFG is reimbursed at its actual cost for such expenditures.  
Fees and other costs incurred during the three month periods ended March 31, 
1997 and 1996, which were paid or accrued by the Trust to EFG or its 
Affiliates, are as follows:

                                         1997            1996
                                       --------       ---------
  Equipment acquisition fees                 --      $   36,109
  Equipment management fees          $   44,578          48,461
  Administrative charges                 10,134           5,250
  Reimbursable operating expenses
    due to third parties                 28,723          11,726
                                       --------       ---------
       Total                           $ 83,435       $ 101,546
                                       --------       ---------
                                       --------       ---------

                                      7

<PAGE>

                            AFG Investment Trust A

                      Notes to the Financial Statements

                                 (Continued)

  All rents and proceeds from the sale of equipment are paid directly to 
either EFG or to a lender.  EFG temporarily deposits collected funds in a 
separate interest-bearing escrow account prior to remittance to the Trust.  
At March 31, 1997, the Trust was owed $48,939 by EFG for such funds and the 
interest thereon.  These funds were remitted to the Trust in April 1997.

NOTE 6 - NOTES PAYABLE

  Notes payable at March 31, 1997 consisted of installment notes of 
$3,655,800 payable to banks and institutional lenders.  The notes bear 
interest rates ranging between 5.7% and 9.17%, except for one note which 
bears a fluctuating interest rate based on LIBOR plus a margin (5.7% at March 
31, 1997).  All of the installment notes are non-recourse and are 
collateralized by the equipment and assignment of the related lease payments. 
Generally, the installment notes will be fully amortized by noncancellable 
rents.  However, the Trust has a balloon payment obligation of $282,421 at 
the expiration of the primary lease term related to the Reno Air aircraft.  
The carrying amount of notes payable approximates fair value at March 31, 
1997.

  The annual maturities of the notes payable are as follows:

  For the year ending March 31, 1998    $ 2,106,594
                                1999        818,412
                                2000        111,702
                                2001        120,800
                                2002        130,639
                          Thereafter        367,653
                                        -----------
                                Total   $ 3,655,800
                                        -----------
                                        -----------

NOTE 7 - LEGAL PROCEEDINGS

  On July 27, 1995, EFG, on behalf of the Trust and other EFG-sponsored 
investment programs, filed an action in the Commonwealth of Massachusetts 
Superior Court Department of the Trial Court in and for the County of 
Suffolk, for damages and declaratory relief against a lessee of the Trust, 
National Steel Corporation  ("National Steel"), under a certain Master Lease 
Agreement ("MLA") for the lease of certain equipment.  EFG is seeking the 
reimbursement by National Steel of certain sales and/or use taxes paid to the 
State of Illinois and other remedies provided by the MLA.  On August 30, 
1995, National Steel filed a Notice of Removal which removed the case to the 
United States District Court, District of Massachusetts.  On September 7, 
1995, National Steel filed its Answer to EFG's Complaint along with 
Affirmative Defenses and Counterclaims, seeking declaratory relief and 
alleging breach of contract, implied covenant of good faith and fair dealing 
and specific performance.  EFG filed its Answer to these counterclaims on 
September 29, 1995.  Though the parties have been discussing settlement with 
respect to this matter for some time, to date, the negotiations have been 
unsuccessful.  Notwithstanding these discussions, EFG recently filed an 
Amended and Supplemental Complaint alleging a further default by National 
Steel under the MLA and EFG recently filed a Summary Judgment on all claims 
and counterclaims.  The matter remains pending before the Court.  The Trust 
has not experienced any material losses as a result of this action.

NOTE 8- SOLICITATION AND REGISTRATION STATEMENTS

  On October 26, 1996, the Managing Trustee, on behalf of the Trust, filed a 
Solicitation Statement with the Securities and Exchange Commission which was 
subsequently sent to the Beneficiaries pursuant to Regulation

                                      8

<PAGE>

                            AFG Investment Trust A

                      Notes to the Financial Statements

                                 (Continued)

14A of  Section 14 of the Securities Exchange Act.  The Solicitation 
Statement sought to solicit the consent of the Beneficiaries to a proposed 
amendment ("the Amendment") to the Amended and Restated Declaration of Trust 
(the "Trust Agreement").  

  The Amendment would (i) amend the provisions of the Trust Agreement 
governing the redemption of Interests to permit the Trust to offer to redeem 
outstanding interests at such times, in such amounts, in such manner and at 
such prices as the Managing Trustee may determine from time to time, in 
accordance with applicable law; and (ii) add a provision to the Trust 
Agreement that would permit the Trust to issue, at the discretion of the 
Managing Trustee and without further consent or approval of the 
Beneficiaries, an additional class of security with such designations, 
preferences and relative, participating, optional or other special rights, 
powers and duties as the Managing Trustee may fix.  Such a security, if it 
were to be offered and sold, would provide the Trust with the funds to (a) 
implement more expansive Interest redemption opportunities for Beneficiaries 
without using Trust funds which may otherwise be available for current cash 
distributions; and (b) make a special one-time distribution to the 
Beneficiaries.

  Pursuant to the Trust Agreement, the adoption of the Amendment required the 
consent of the Beneficiaries holding more than fifty percent in the aggregate 
of the Interests held by all Beneficiaries.  A majority of Beneficiary 
Interests, representing 286,868 or 52.2% of all Beneficiary Interests, voted 
in favor of the Amendment; 49,019 or 8.9% of all Beneficiary Interests voted 
against the Amendment; and 16,104 or 2.9% of all Beneficiary Interests 
abstained.  Approximately 64% of all Beneficiary Interests participated in 
the vote.  Accordingly, the Amendment was adopted.

  On February 12, 1997, the Trust filed a Registration Statement on Form S-1 
(which was amended on April 11, 1997 and May 9, 1997) with the Securities and 
Exchange Commission which covers, among other things, the creation and sale 
of a new class of beneficiary interests in the Trust (the "Class B 
Interests").  A portion of the proceeds from the offering of the Class B 
Interests would be used to make a one-time special cash distribution to 
existing Beneficiaries (the "Class A Beneficiaries") of the Trust and to 
enable the Trust to redeem a portion of the existing Beneficiary Interests 
(the "Class A Interests").  The characteristics of the Class B Interests, 
associated risk factors, and other matters of importance to the Beneficiaries 
and prospective purchasers of the Class B Interests are contained in the 
Registration Statement.  Presently, the Registration Statement is undergoing 
regulatory review and has not been declared effective.

NOTE  9 - SUBSEQUENT EVENT

  On April 30, 1997, the vessel partnerships, in which the Trust and certain 
affiliated investment programs are limited partners and through which the 
Trust and the affiliated investment programs shared economic interests in 
three cargo vessels (the "Vessels") leased by KGJS/Gearbulk Holdings Limited 
(the "Lessee"), exchanged their ownership interests in the Vessels for 
1,987,000 shares of common stock in Banyan Strategic Land Fund II ("Banyan") 
and a purchase money note of $8,219,500 (the "Note").  Banyan is a Delaware 
corporation organized on April 14, 1987 and has its common stock listed on 
NASDAQ.  Banyan holds certain real estate investments, the most significant 
being a 274 acre site near Malibu, California ("Rancho Malibu").

  The exchange was organized through an intermediary company (Equis Exchange 
LLC, 99% owned by Banyan and 1% owned by EFG), which was established for the 
sole purpose of facilitating the exchange.  There were no fees paid to EFG by 
Equis Exchange LLC or Banyan or by any other party that otherwise would not 
have been paid to EFG had the Trust sold its beneficial interest in the 
Vessels directly to the Lessee.  The Lessee prepaid all of its remaining 
contracted rental obligations and purchased the Vessels in two closings 
occurring on May 6, 1997 and May 12, 1997.  The above-referenced Note was 
repaid with $3,800,000 of cash and delivery of a $4,419,500 note from Banyan 
(the "Banyan Note").

                                      9

<PAGE>

                            AFG Investment Trust A

                      Notes to the Financial Statements

                                 (Continued)

  As a result of the exchange transaction and its original 33% beneficial 
ownership interest in Hato Arrow, one of the three Vessels, the Trust received 
$435,768 in cash and is the beneficial owner of 209,694 shares of Banyan common 
stock and holds a beneficial interest in the Banyan Note of $462,353.  

  Cash equal to the amount of the Banyan Note is being held by Banyan in a 
segregated account pending the outcome of certain shareholder proposals.  
Specifically, as part of the exchange, Banyan agreed to seek consent ("Consent")
from its shareholders to: (1) amend its certificate of incorporation and by-
laws; (2) make additional amendments to restrict the acquisition of its common 
stock in a way to protect Banyan's net operating loss carry-forwards, and (3) 
engage EFG to provide administrative services to Banyan, which services EFG will
provide at cost.  If the Consent is not obtained, repayment of the Banyan Note 
will be accelerated and repaid from the cash held in the segregated account.   
If the Consent is obtained, the Banyan Note will be amortized over three years 
and bear an annual interest rate of 10%.

  In connection with the Banyan transaction, Gary D. Engle, President and 
Chief Executive Officer of EFG, joined the Board of Directors of Banyan and 
James A. Coyne, Senior Vice President of EFG became Banyan's Chief Operating 
Officer.  The agreement also provides that a majority of the Board of 
Directors remain independent of Banyan and EFG.  Provided Consent is received 
by October 31, 1997, Banyan has agreed to declare a $0.20 per share dividend 
to be paid on all shares, including those beneficially owned by the Trust.

  The Managing Trustee believes that the underlying tangible assets of 
Banyan, particularly the Rancho Malibu property, can be sold or developed on a 
tax free basis due to Banyan's net operating loss carryforwards and can provide 
an attractive economic return to the Trust. 







                                      10


<PAGE>

                            AFG Investment Trust A

                                  FORM 10-Q

                         PART I. FINANCIAL INFORMATION

ITEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
         OF OPERATIONS.

THREE MONTHS ENDED MARCH 31, 1997 COMPARED TO THE THREE MONTHS ENDED MARCH 31, 
1996:

OVERVIEW

  As an equipment leasing trust, AFG Investment Trust A ("the Trust") was 
organized to acquire a diversified portfolio of capital equipment subject to 
lease agreements with third parties.  The Trust was designed to progress 
through three principal phases:  acquisitions, operations, and liquidation.  
During the operations phase, a period of approximately six years, all 
equipment in the Trust's portfolio will progress through various stages.  
Initially, all equipment will generate rental revenues under primary term 
lease agreements.  During the life of the Trust, these agreements will expire 
on an intermittent basis and equipment held pursuant to the related leases 
will be renewed, re-leased or sold, depending on prevailing market conditions 
and the assessment of such conditions by EFG to obtain the most advantageous 
economic benefit.  Over time, a greater portion of the Trust's original 
equipment portfolio will become available for remarketing and cash generated 
from operations and from sales or refinancings will begin to fluctuate.  
Ultimately, all equipment will be sold and the Trust will be dissolved.  The 
Trust's operations commenced in 1992.

RESULTS OF OPERATIONS

  For  the three months ended March 31, 1997, the Trust recognized lease 
revenue of $1,179,837, compared to $1,254,648 for the same period in 1996.  
The decrease in lease revenue from 1996 to 1997 is due to the Trust's sale of 
its interest in a Boeing 747-SP aircraft leased to United Air Lines, Inc. 
(the "United Aircraft")  in February 1996, as discussed below and primary 
lease term expirations.  The Trust also earns interest income from temporary 
investments of rental receipts and equipment sales proceeds in short-term 
instruments.

  The Trust's equipment portfolio includes certain assets in which the Trust 
holds a proportionate ownership interest.  In such cases, the remaining 
interests are owned by EFG or an affiliated equipment leasing program 
sponsored by EFG.  Proportionate equipment ownership enables the Trust to 
further diversify its equipment portfolio by participating in the ownership 
of selected assets, thereby reducing the general levels of risk which could 
result from a concentration in any single equipment type, industry or lessee. 
The Trust and each affiliate individually report, in proportion to their 
respective ownership interests, their respective shares of assets, 
liabilities, revenues, and expenses associated with the equipment.

  During the three months ended March 31, 1997, the Trust sold equipment 
having a net book value of $10,405 to existing lessees and third parties.  
These sales resulted in a net gain, for financial statement purposes, of 
$2,095.

  On February 5, 1996, the Trust concluded the sale of its interest in the 
United Aircraft to the lessee, United Air Lines, Inc., ("United"), as 
reported in Note 3 to the Trust's 1996 Annual Report.  The Trust recognized a 
net loss of $458,638 in connection with this transaction, of which $311,621 
was recognized as Write-Down of Equipment in 1995.  The remainder of $147,017 
was recognized as a loss on sale of equipment on the accompanying Statement 
of Operations for the three months ended March 31, 1996.  In addition to 
lease rents, the Trust received net sale proceeds of $1,392,779 from United 
for the aircraft.  A portion of such sale proceeds was reinvested in other 
equipment in March 1996 through the acquisition of an 8.86% ownership 
interest in an aircraft (the "Reno Aircraft") at an aggregate cost to the 
Trust of $1,239,741.  To acquire its interest in the Reno Aircraft, the Trust 
obtained long-term financing of $997,888 from a third-party lender and 
utilized cash proceeds of $241,853 from the sale of the United Aircraft.  
During the three months ended March 31, 1996, the Trust sold other equipment 
having a net book value of $15,821, to existing lessees and third parties.  
These sales resulted in a net loss, for financial statement purposes, of 
$1,050.

                                      11


<PAGE>

                            AFG Investment Trust A

                                  FORM 10-Q

                         PART I. FINANCIAL INFORMATION

   It cannot be determined whether future sales of equipment will result in a 
net gain or a net loss to the Trust, as such transactions will be dependent 
upon the condition and type of equipment being sold and its marketability at 
the time of sale.  In addition, the amount of gain or loss reported for 
financial statement purposes is partly a function of the amount of 
accumulated depreciation associated with the equipment being sold.

  The ultimate realization of residual value for any type of equipment is 
dependent upon many factors, including EFG's ability to sell and re-lease 
equipment.  Changing market conditions, industry trends, technological 
advances, and many other events can converge to enhance or detract from asset 
values at any given time.  EFG attempts to monitor these changes in order to 
identify opportunities which may be advantageous to the Trust and which will 
maximize total cash returns for each asset.

  The total economic value realized upon final disposition of each asset is 
comprised of all primary lease term revenue generated from that asset, 
together with its residual value.  The latter consists of cash proceeds 
realized upon the asset's sale in addition to all other cash receipts 
obtained from renting the asset on a re-lease, renewal or month-to-month 
basis.  The Trust classifies such residual rental payments as lease revenue.  
Consequently, the amount of gain or loss reported in the financial statements 
is not necessarily indicative of the total residual value the Trust achieved 
from leasing the equipment.

  Depreciation and amortization expense was $932,497 and $952,119 for the 
three month periods ended March 31, 1997 and 1996, respectively.  For 
financial reporting purposes, to the extent that an asset is held on primary 
lease term, the Trust depreciates the difference between (i) the cost of the 
asset and (ii) the estimated residual value of the asset on a straight-line 
basis over such term.  For purposes of this policy, estimated residual values 
represent estimates of equipment values at the date of primary lease 
expiration.  To the extent that an asset is held beyond its primary lease 
term, the Trust continues to depreciate the remaining net book value of the 
asset on a straight-line basis over the asset's remaining economic life.

  Interest expense was $43,358 or 3.7% of lease revenue in the three months 
ended March 31, 1997, compared to $104,957 or 8.4% of lease revenue for the 
same period in 1996.  Interest expense in future periods will continue to 
decline in amount and as a percentage of lease revenue as the principal 
balance of notes payable is reduced through the application of rent receipts 
to outstanding indebtedness.

  Management fees were 3.8% and 3.9% of lease revenue during the three months 
ended March 31, 1997 and 1996, respectively.  Management fees are based on 5% 
of gross lease revenue generated by operating leases and 2% of gross lease 
revenue generated by full payout leases.

  Operating expenses consist principally of administrative charges, 
professional service costs, such as audit and legal fees, as well as 
printing, distribution and remarketing expenses.  Collectively, operating 
expenses represented 3.3% and 1.4% of lease revenue during the three months 
ended March 31, 1997 and 1996, respectively.  The increase in operating 
expenses from 1996 to 1997 was due primarily to professional service costs 
incurred in connection with the Solicitation and Registration Statements 
described in Note 8 to the accompanying financial statements.  The amount of 
future operating expenses cannot be predicted with certainty; however, such 
expenses are usually higher during the acquisition and liquidation phases of 
a trust.  Other fluctuations typically occur in relation to the volume and 
timing of remarketing activities.

LIQUIDITY AND CAPITAL RESOURCES AND DISCUSSION OF CASH FLOWS

  The Trust by its nature is a limited life entity which was established for 
specific purposes described in the preceding "Overview".  As an equipment 
leasing program, the Trust's principal operating activities derive from asset 
rental transactions.  Accordingly, the Trust's principal source of cash from 
operations is provided by the collection of periodic rents.  These cash 
inflows are used to satisfy debt service obligations associated with 
leveraged leases, and to pay management fees and operating costs.  Operating 
activities generated net cash

                                      12


<PAGE>

                            AFG Investment Trust A

                                  FORM 10-Q

                         PART I. FINANCIAL INFORMATION

inflows of $1,119,651 and $1,004,143 for the three months ended March 31, 
1997  and 1996, respectively.  Future renewal, re-lease and equipment sale 
activities will cause a gradual decline in the Trust's primary-term lease 
revenue and corresponding sources of operating cash.  Overall, expenses 
associated with rental activities, such as management fees, and net cash flow 
from operating activities will decline as the Trust experiences a higher 
frequency of remarketing events.

  The Trust's equipment is leased by a number of creditworthy, 
investment-grade companies and, to date, the Trust has not experienced any 
material collection problems and has not considered it necessary to provide 
an allowance for doubtful accounts.  Notwithstanding a positive collection 
history, there is no assurance that all future contracted rents will be 
collected or that the credit quality of the Trust's lessees will be 
maintained.  Collection risk could increase in the future, particularly as 
the Trust remarkets its equipment and enters re-lease agreements with 
different lessees.  The Managing Trustee will continue to evaluate and 
monitor the Trust's experience in collecting accounts receivable to determine 
whether a future allowance for doubtful accounts may become appropriate.

  Ultimately, the Trust will dispose of all assets under lease.  This will 
occur principally through sale transactions whereby each asset will be sold 
to the existing lessee or to a third party.  Generally, this will occur upon 
expiration of each asset's primary or renewal/re-lease term.  In certain 
instances, casualty or early termination events may result in the disposal of 
an asset.  Such circumstances are infrequent and usually result in the 
collection of stipulated cash settlements pursuant to terms and conditions 
contained in the underlying lease agreements.

  Cash expended for asset acquisitions and cash realized from asset disposal 
transactions are reported under investing activities on the accompanying 
Statement of Cash Flows.  During the three months ended March 31, 1996, the 
Trust expended $1,441,796 to acquire equipment.  This amount reflects the 
acquisition of an ownership interest in a commercial jet aircraft at a cost 
of $1,239,741, pursuant to the reinvestment provisions of the Trust's 
prospectus and an original equipment acquisition of $202,055.  There were no 
equipment acquisitions during the same period in 1997.  During the three 
months ended March 31, 1997, the Trust realized net cash proceeds of $12,500 
compared to $1,407,550 for the same period in 1996.  Future inflows of cash 
from asset disposals will vary in timing and amount and will be influenced by 
many factors including, but not limited to, the frequency and timing of lease 
expirations, the type of equipment being sold, its condition and age, and 
future market conditions.  

  The Trust obtained long-term financing in connection with certain equipment 
leases.  The origination of such indebtedness and the subsequent repayments 
of principal are reported as components of financing activities.  Cash 
inflows of $997,888 in 1996 resulted from leveraging a portion of the Trust's 
equipment portfolio with third-party lenders.  Each note payable is recourse 
only to the specific equipment financed and to the minimum rental payments 
contracted to be received during the debt amortization period (which period 
generally coincides with the lease rental term).  As rental payments are 
collected, a portion or all of the rental payment is used to repay the 
associated indebtedness.  In future periods, the amount of cash used to repay 
debt obligations will decline as the principal balance of notes payable is 
reduced through the collection and application of rents.  However, the Trust 
has a balloon payment obligation of $282,421 at the expiration of the primary 
lease term related to the Reno Aircraft.

  Cash distributions to the Managing Trustee, the Special Beneficiary and the 
Beneficiaries are declared and generally paid within 45 days following the 
end of each calendar month.  The payment of such distributions is presented 
as a component of financing activities.  For the three months ended March 31, 
1997, the Trust declared total cash distributions of Distributable Cash From 
Operations and Distributable Cash From Sales and Refinancings of $247,829.  
In accordance with the Trust Agreement, the Beneficiaries were allocated 
90.75% of these distributions, or $224,905; the Special Beneficiary was 
allocated 8.25%, or $20,446; and the Managing Trustee was allocated 1%, or 
$2,478.

                                      13


<PAGE>

                            AFG Investment Trust A

                                  FORM 10-Q

                         PART I. FINANCIAL INFORMATION

  For financial reporting purposes, the Managing Trustee and the Special 
Beneficiary each have accumulated a capital deficit at March 31, 1997.  This 
is the result of aggregate cash distributions to these Participants being in 
excess of their aggregate capital contributions ($1,000 each) and their 
respective allocations of financial statement net income or loss.  
Ultimately, the existence of a capital deficit for the Managing Trustee or 
the Special Beneficiary for financial reporting purposes is not indicative of 
any further capital obligations to the Trust by either the Managing Trustee 
or the Special Beneficiary.  However, for income tax purposes, the Trust 
Agreement requires that income be allocated first to those Participants 
having negative tax capital account balances so as to eliminate any such 
balances.   In accordance with the Trust Agreement, upon the dissolution of 
the Trust, the Managing Trustee will be required to contribute to the Trust 
an amount equal to any negative balance which may exist in the Managing 
Trustee's tax capital account.  No such requirement exists with respect to 
the Special Beneficiary.  At December 31, 1996, the Managing Trustee had a 
positive tax capital account balance.

  At March 31, 1997, the Trust had aggregate future minimum lease payments of 
$5,348,865 from contractual lease agreements (see Note 3 to the financial 
statements), of which $3,655,800 will be used to amortize the principal 
balance of notes payable (see Note 6 to the financial statements).  
Additional cash inflows will be realized from future remarketing activities, 
such as lease renewals and equipment sales, the timing and extent of which 
cannot be predicted with certainty.  This is because the timing and extent of 
equipment sales is often dependent upon the needs and interests of the 
existing lessees.  Some lessees may choose to renew their lease contracts, 
while others may elect to return the equipment.  In the latter instances, the 
equipment could be re-leased to another lessee or sold to a third party.  
Accordingly, as the Trust matures and a greater level of its equipment assets 
become available for remarketing, the cash flows of the Trust will become 
less predictable.  In addition, the Trust will have cash outflows to satisfy 
interest on indebtedness and to pay management fees and operating expenses.  
Ultimately, the Trust is expected to meet its future disbursement obligations 
and to distribute any excess of cash inflows over cash outflows to the 
Participants in accordance with the Trust Agreement.  However, several 
factors, including month-to-month lease extensions, lessee defaults, 
equipment casualty events, and early lease terminations could alter the 
Trust's anticipated cash flows as described herein and in the accompanying 
financial statements and result in fluctuations to the Trust's periodic cash 
distribution payments.

  Cash distributions paid to the Participants consist of both a return of and 
a return on capital.  Cash distributions do not represent and are not 
indicative of yield on investment.  Actual yield on investment cannot be 
determined with any certainty until conclusion of the Trust and will be 
dependent upon the collection of all future contracted rents, the generation 
of renewal and/or re-lease rents, and the residual value realized for each 
asset at its disposal date.  Future market conditions, technological changes, 
the ability of EFG to manage and remarket the assets, and many other events 
and circumstances, could enhance or detract from individual asset yields and 
the collective performance of the Trust's equipment portfolio.

  It is the intention of the Managing Trustee to maintain a cash distribution 
level that is consistent with the operating cash flows of the Trust and to 
optimize the long-term value of the Trust.  A distribution level that is 
higher than the Trust's operating cash flows could compromise the Trust's 
working capital position, as well as its ability to refurbish or upgrade 
equipment in response to lessee requirements or other market circumstances.  
Accordingly, in order to better align monthly cash distributions with the 
Trust's operating cash flows, the Managing Trustee reduced the level of 
monthly cash distributions from an annualized rate of $2.52 per Beneficiary 
Interest (the rate established and paid from the Trust's inception through 
September 1995) to an annualized rate of $1.26 per Beneficiary Interest 
commencing in October 1995.  In October 1996, the Managing Trustee increased 
the annualized distribution rate to $1.64 per Beneficiary Interest and 
expects that the Trust will be able to sustain this distribution rate 
throughout 1997.  However, the nature of the Trust's principal cash flows 
gradually will shift from rental receipts to equipment sale proceeds as the 
Trust matures.  As this occurs, the Trust's cash flows will become more 
volatile in that certain of the Trust's equipment leases will be renewed and 
certain of its assets will be sold.  In some cases, the Trust may be required 
to expend funds to refurbish or otherwise improve the equipment being 
remarketed in order to make it more desirable to a potential lessee or 
purchaser.  The Trust's Advisor, EFG, and the Managing Trustee will attempt 
to monitor and manage these events to maximize the residual value of the 
Trust's equipment and will consider these factors, in addition to the 
collection of contractual rents, the retirement of scheduled indebtedness and 
the Trust's future working capital and equipment requirements, in 
establishing future cash distribution rates.  Ultimately, the Participants 
should expect that cash distribution rates will fluctuate over the long term 
as a result of future remarketing activities.  

                                      14


<PAGE>

                            AFG Investment Trust A

                                  FORM 10-Q

                         PART II. FINANCIAL INFORMATION





  Item 1.                   Legal Proceedings  
                            Response:

                            Refer to Note 7 to the financial statements herein.

  Item 2.                   Changes in Securities
                            Response:  None

  Item 3.                   Defaults upon Senior Securities
                            Response:  None

  Item 4.                   Submission of Matters to a Vote of Security Holders
                            Response:  None

  Item 5.                   Other Information
                            Response:  None

  Item 6(a).                Exhibits
                            Response:  None

  Item 6(b).                Reports on Form 8-K
                            Response:  None




                                      15

<PAGE>

                                SIGNATURE PAGE



  Pursuant to the requirements of the Securities Exchange Act of 1934, this 
report has been signed below on behalf of the registrant and in the capacity 
and on the date indicated.

                                         AFG Investment Trust A


                                By:  AFG ASIT Corporation, a Massachusetts
                                     corporation and the Managing Trustee of
                                     the Registrant.


                                By:  /s/ Michael J. Butterfield
                                   -------------------------------------------
                                     Michael J. Butterfield
                                     Treasurer AFG ASIT Corporation
                                     (Duly Authorized Officer and
                                     Principal Accounting Officer)


                                Date:    May 15, 1997
                                      ----------------------------------------


                                By:   /s/ Gary M. Romano
                                   -------------------------------------------
                                     Gary M. Romano
                                     Clerk of AFG ASIT Corporation
                                     (Duly Authorized Officer and
                                     Principal Financial Officer)


                                Date:    May 15, 1997
                                     -----------------------------------------

                                      16